For families of significant wealth, maintaining control and harmony across generations requires more than sophisticated planning—it demands structure, communication, and purpose. While HBO’s Succession dramatizes the pitfalls of family wealth, the real-world solution lies in proactive family governance and the thoughtful use of modern trust law.
As we explored in our “Protecting Families of Wealth from Themselves” series, planning tools such as Dynasty Trusts, Privacy Protections, Asset Protection Trusts, and Directed Trusts provide a strong foundation. Yet, for many families, the structure that brings these tools together under a cohesive framework of oversight, education, and participation is the Private Trust Company.
A Private Trust Company (PTC) is a privately held entity that manages the assets and wealth of a single family. Unlike public trust companies that serve multiple clients, a PTC is designed exclusively for one family, often those with complex assets such as real estate, businesses, artwork, luxury yachts, and aircraft.
Why Families Choose a Private Trust Company
A PTC can be an ideal option for families of significant wealth for several reasons:
- Preserve Wealth: A PTC helps families preserve and protect their wealth by leveraging modern trust law planning tools available in top-tier jurisdictions such as South Dakota.
- Plan for Succession: PTCs can help families plan for the next generation by transferring assets in a structured and transparent way, executed by family-appointed fiduciaries under the oversight of a Board of Managers. This framework creates an opportunity for families to shape the long-term stewardship of their wealth and cultural goals.
- Provide Control: By establishing clear governance policies and procedures as well as a defined “statement of purpose,” PTCs allow families to maintain meaningful control over their wealth, even amid potential family conflict, divorce, or death.
- Involve Family Members: A PTC creates opportunities for family engagement by allowing members to serve on the Board of Managers, advisory committees, or in fiduciary roles. This involvement encourages education, transparency, and collaboration around trust management, offering a level of participation not available through institutional trustee relationships.
- Achieve Cost Efficiency: PTCs can be more cost-effective than institutional trustees because they typically operate at a de minimis profit or breakeven, often making them a less expensive solution for families with approximately $500 million or more in assets.
Throughout our “Protecting Families of Wealth from Themselves” series, we’ve explored how modern trust law empowers families to preserve, protect, and guide wealth across generations. A Private Trust Company brings these concepts together—combining structure, education, and independence within a single governance model that promotes lasting family harmony and control.
As part of this ongoing discussion, we invite you to join us on December 17 for a live presentation inspired by HBO’s Succession, where we will explore these planning concepts in even greater depth. Reserve your spot at: bridgefordtrust.com/livestreams.
If you have any questions or would like to learn more about Private Trust Companies, please reach out to us via our contact form or call us at (605) 224-9189.
